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Buying a home in Silicon Valley, especially in "hot" markets such as Los Altos and Palo Alto, is a tough call for anyone trying to buy in the entry-level price ranges. Even now, as Fall rolls on and many buyers settle down for the holidays, multiple offers still rule many transactions. Most buyers are told that this time of year means less of these situations and many take a similar stance they did in the Spring - they don't want to compete.
On a house recently listed in Los Altos, an offer date was set for yesterday and the seller was expecting to see 5 offers. My clients were notified Monday and asked when they'd like to get together to write an offer. They loved the house, it was in their price range, and a good deal overall compared to overs in the area. What's the email I get back from them...
We don't want to compete with multiple offers. Let us know if the seller declines them and maybe we'll write.
Really? I understand not wanting to overpay and all buyers want a deal. Here's the rub, if the house is a "great deal" it will get a lot of attention no matter what time of year. If you're buying in the entry-level price range of ANY market, you'll always have more competition - from buyers and investors. So, you have to engage and strike while the opportunity exists. Here are two reasons for why making an offer right after several others fail is a bad idea:
The listing agent WILL call all the agents who brough those offers and let them know a new offer is in. Any other buyer playing "the waiting game" who really wants it will come back and WHAM! you're back in a multiple offer situation.
The seller may be annoyed at offers coming in too low or buyers playing games with their offers. They may pull the property off the market and wait for Spring to sell into multiple buyers again. I've seen this many times.
My advice to you is to not worry about multiple offers and write the best possible offer at the time. The role of your agent, my role, is to make sure the seller sees your offer as the best of the bunch. It may not always come down to price. Your qualifications to buy, down payment, terms, and other factors are all possible advantages that come into play just as much as price. If you really like a house, don't let it slip away - write the offer.
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Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.